00:00Social Security shakes up 2025. Your retirement, your money. In 2025, Social Security continues its role as a bedrock for millions of Americans, with the average monthly benefit now topping $2,000 for the first time.
00:15That's around $24,000 a year for the typical senior. But the rules of the game are changing, and understanding these new regulations is critical for anyone planning their financial future.
00:26For those born in 1959, a significant change is underway. Your full retirement age, or FRA, has increased by 2 months to 66 years and 10 months.
00:37This is the age you must reach to receive your full base monthly benefit. Claiming benefits before this age will permanently reduce your checks.
00:45For instance, claiming at age 62 will slash your benefit by nearly 30%. On the other hand, delaying benefits past your FRA the way to age 70 can boost your monthly payment by 8% for each year you wait.
00:59For someone with an FRA of 67, waiting until age 70 can increase your benefit by 24%.
01:06Another key change impacts higher earners. The taxable wage-based limit has increased to $176,100, up from $168,600.
01:17This means that a larger portion of income for some higher-earning individuals is now subject to Social Security payroll taxes.
01:24While this may mean a bigger tax bill today, it also contributes to a larger retirement benefit down the line.
01:30Finally, for those who are still working while receiving benefits, the retirement earnings test has new limits.
01:36If you won't reach your FRA in 2025, the limit is now $23,400. Earn more than that, and your benefits will be reduced by $1 for every $2 you go over.
01:47If you will reach your FRA this year, the limit is $62,160, with a $1 reduction for every $3 earned above the limit.
01:56The good news is, these withheld benefits are not lost forever. They're added back to your checks after you reach your full retirement age.
02:03With these changes, the strategies you employ to maximize your benefits become even more important.
02:10Working for at least 35 years is crucial, as your benefit is calculated based on your 35 highest earning years.
02:17Maximizing your income today can lead to higher benefits tomorrow, and choosing the right claiming age, whether it's at your FRA or a bit later,
02:24is a decision that could significantly impact your financial well-being for decades to come.
02:29Money Explainers
02:30Money Explainers
02:31Money
02:32Money
02:32Money
02:33Money
02:34Money
02:35Money
02:36Money
02:37Money
02:38Money
02:39Money
02:40Money
02:41Money
02:42Money
02:43Money
02:44Money
02:45Money
02:46Money
02:47Money
02:48Money
02:49Money
02:50Money
02:51Money
02:52Money
02:53Money
02:54Money
02:55Money
02:56Money
02:57Money
Comentarios